ALJ/VDR/hkr DRAFT CA-3

4/19/2001

Decision DRAFT DECISION OF ALJ RYERSON (Mailed 3/7/2001)

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

In the Matter of the Application of AmericanStar Tours for authority to operate as a passenger stage corporation between points in San Luis Obispo, Santa Barbara, Ventura, Monterey, Santa Clara and San Francisco and the, Santa Barbara, Los Angeles, San Francisco and San Jose International Airports and to Establish a Zone of Rate Freedom.

Application 00-05-006 (Filed May 3, 2000)

OPINION

Summary

AmericanStar Tours, Inc. (AST) seeks authority to provide on-call, door-to-door passenger stage service connecting to a fixed route service, to serve points in San Luis Obispo and northern Santa Barbara Counties, on one hand, and the major airports and other transportation terminals in San Francisco, San Jose, Los Angeles, and Long Beach, on the other hand. AST also seeks authority to establish a Zone of Rate Freedom (ZORF). A limited protest was filed by Central Coast Shuttle Services, Inc. (CCSS), a newly certificated carrier operating in the Santa Maria and Buellton area, based upon competitive concerns.

Following the prehearing conference (PHC), the parties proposed mutually acceptable conditions to limit the adverse competitive effect of AST's service on CCSS for a reasonable period. AST's application to establish the new service is granted, subject to these conditions. AST's request to establish a ZORF is also approved. However, AST's request for approval of the ZORF requires an additional showing pursuant to Pub. Util. Code § 454.2, and AST must make an additional compliance filing to satisfy this requirement.